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The Pros & Cons of In-House Versus Outsourced R&D (Research & Development) Activity for Technology Firms - Essay Example

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Outsourcing vendors like India, China, Philippines and other emerging economies have arose as a favorable destination for outsourcing business processes with regard to its strong financial markets and rich human capital. They are emerging as a service hub for many multinationals…
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The Pros & Cons of In-House Versus Outsourced R&D (Research & Development) Activity for Technology Firms
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The Pros & Cons of In-House Versus Outsourced R&D (Research & Development) Activity for Technology Firms

Download file to see previous pages... The first section takes into account the various purposes and definitions of outsourcing as an activity. The primary reasons are explored in detail as to its evolution and factors influencing its security impacts on businesses.
The next section outlines the various security issues that may arise in the outsourcing business and its various implications to the business and customer confidence. The primary focus is on secure outsourcing which acts to the safety of businesses and retains the faith and confidence in their services. It acts as a great tool to foster harmonies relationships and ensure business continuity for gaining competitive advantage.
The need for state-of-the-art IT solutions worked out and innovations implemented with small losses, outsourcing may be the only way out. It will save from the nightmare of retraining employees (or even hiring new ones) and/or paying for re-equipment (Kenneth, 2007).
Information strategy for any organization is purely based on their requirements to manage business and envelope operations into a system which would in turn effectively manage their resources and yield not only profits in the long run but satisfaction to its employees and customers (Laudon, 2002).
Rich human capital: Outsourced software vendors produce ‘A’ level business and technological graduates from its most prestigious institutes like Institutes of Management and Institute of Technology. They possess extremely high talent in terms of fundamental knowledge and high level of skills due to their immense strength of aptitude and quantitative ability. The human capital has capability to take up entrepreneurship and make a difference to their economy (Checkland, 2003).
Cost efficiency: In Outsourced software vendors, the costs of living and spending habits are quite less and thus the monetary policies are favorable for development at low costs. It makes it favorable for companies to outsource ...Download file to see next pagesRead More
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